REWARDS OFW Coop Condotel

A Condominium project operating as a hotel owned by juanREWARDS Multipurpose Cooperative (jRMC) in partnership with Creating Abundance in Real Estate Network (CARENET) Multipurpose Cooperative as hotel manager and operator, the first of such development in the Philippines.

REWARDS HOTEL, a condominium project to be operated as a hotel for investment purposes. It is said to be the FIRST because the concept is different from the traditional condominium hotels in the market today. The real estate industry in the Philippines, especially the condo hotel sector is on its way up and is gaining momentum for a fast paced growth in the next two years or so. Hence, this is the most opportune timing in investing in a Condotel in the Philippines.

Firstly, it will be the first project in this category which is 100% for investment purpose where the units are fully owned by the buyers/investors and leased back to the developer-operator as part of the pooled hotel rooms. Secondly, it is the first project to be funded, developed, and operated by a cooperative whose common bond of association is Overseas Filipino Workers (OFW).

Advantages:a. Deeded ownership, no landlord.b. Rental revenue to offset some or maybe all of the ownership expensesc. An excellent vacation home the owners can use whenever they want, though prior notice is required.d. A safe real estate investment where other investments may seem more risky or less attractivee. Easy to manage, one can learn from the world’s well-known condotel operators like Carlton and Best Western.f. Strong likelihood of appreciation, especially if the location is a tourist abundant area.g. Pride of ownership – “I own a piece of that 5- star Condotel”h. Transparent and automatic cash flow of income streams.

Target Location of Operation / Setup

Brgy. Malabanas, Metro Clark, Angeles City

Barrio Ibayo, Paranaque City

FTI, Taguig City, Manila

Cebu City

Davao City

National Program – the Department of Tourism in cooperation with the City of Angeles need to produce some 10,000 hotel rooms in order to cope with the continuing growth of visitor arrival in the area. This requirement is owing to the national plan of dual international airport, making Metro Clark not only a secondary gateway to the Philippines but the primary international gateway to the Northern Philippines. Another national program that has affinity to real estate is the OFW reintegration program that aims to develop more investment opportunities where the fast growing foreign currency remittances for the Overseas Filipino Workers. In August this year OFW remittances increased by 6.8% translated into additional US$1.9 Billion. BSP reported that for the first eight months of 2013 remittances reached UD$14.5 Billion that increased money circulation in the country. Project Potential and Proponent - Department of Labor & Employment, Regional Office III reported that close to half million OWFs come from this region, the fastest region in terms of overseas deployment. This figure increased the potential for investment in condotel projects.

World’s well-known condominium hotel developers have these to say: Beth Collingz, Marketing Director of PLC International Marketing and Joel Greene, President of Condo Hotel Center, a US brokerage specializing in selling condotel at pre-construction phase:

“Condotel models are best for investors who are just starting to get wet in hotel operations. There has been an increase in appetite in the hospitality sector which leads to the condotel market growth. In fact, a number of well known international hotel brands have declared that the Philippine’s market in the hotel industry”